Commentary

C1.507 CGT losses—Assets qualifying for capital allowances

Capital gains tax
Capital gains tax | Commentary

C1.507 CGT losses—Assets qualifying for capital allowances

Capital gains tax | Commentary

C1.507 CGT losses—Assets qualifying for capital allowances

Expenditure which has qualified for capital allowances must nevertheless be included in any computation of the gain or loss on the disposal of the assets, but the amount of any loss accruing on the disposal is restricted by reference to the capital allowances made1.

The restriction is effected by excluding from the amounts allowable as a deduction in the computation of the loss2 any expenditure to the extent to which any capital allowance or renewals allowance has been or may be made in respect of it3.

The restriction

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